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Management by Objectives, or MBO, is a management strategy that uses the S.M.A.R.T. goals method--setting objectives that are specific, measurable, achievable, realistic, and time-based.This article discusses the first steps toward implementing this management method in your department.he S.M.A.R.T. method is one way to help you remember how to walk through the process of setting your first MBO objectives. 1  S for Specific: There are several key factors which should be present in the objectives that are set in order for them to be effective. 2  They should be specific.